“Meanwhile, Myer shareholders have spent the last year paying for Garry Hounsell’s retail traineeship. Mr Hounsell must step down immediately or risk having his board spilled by a strong shareholder revolt at the upcoming AGM.”

But IBISWorld industry analyst Kim Do said the results weren’t surprising. The loss was the culmination of trends in the department store sector, she said.

They included increasing competition from specially stores and fast fashion outlets – the success of which suggested Australian consumers were looking for better deals.

“This competition means consumers are able to compare their options, especially with clothing, and choose the store that offers better value,” Ms Do said.

She said Myer was also feeling the effects of market polarisation – with consumers choosing either cheaper goods or luxury brands, and cutting out “mid-market” brands.

Myer rival David Jones has also suffered, Ms Do said, but its positioning as a higher-end retailer meant it didn’t take as big a hit.

However, she said Myer was moving to become more competitive.

“Myer are looking to position themselves as a mid-market retailer, which is surprising given the market polarisation we’re seeing. But it’s better than trying to dip their toes into everything,” Ms Do said.

“They’re also shrinking sections of their stores that are underperforming – like homewares, where they just can’t compete with businesses like Kmart, or even David Jones.”

Consumer and retail business consultancy Retail Doctor Group also said Myer’s plans for the next year, outlined in its statement to the stock exchange, appear to be on the right tack – if they were handled successfully.

“Their goals are fantastic; it all looks very good, but they have to actually do it,” Retail Doctor Group advisory board chair David Kindl said.

“It’s great to focus on something, but until you see that on the floor it’s hard to comment on it. Myer has a lot of internal issues it still has to sort out.”

Nevertheless, Mr Kindl said the outlook for businesses like Myer was improving.

“They’ve got a lot of competition; right now those specialty stores are winning that battle but there’s no reason department stores can’t fight back and claw back some of that wallet share,” he said.

“The people running these businesses are smart and competent, I’m sure they’ll get there, but it’s going to be difficult.”

At the time of writing, Myer’s share price had dipped 4.14 per cent since the opening of the market.